Daimler, BMW to combine car-sharing businesses

German carmakers Daimler and BMW have joined forces to expand their businesses in new services such as car-sharing and electric vehicle charging, raising their full-year guidance to reflect the deal.

Mercedes-owner Daimler and BMW, Germany's two biggest luxury carmakers, are preparing for a new era in mobility services where self-driving cars could allow them to expand into a business segment currently dominated by Uber in the United States and Didi Chuxing in China.

Under the terms of the deal, which includes car-sharing units Car2Go and DriveNow as well as ride-hailing, parking and charging services, Daimler and BMW will each hold a 50 percent stake in a joint venture.

They said their goal was to offer customers a system of intelligent, seamlessly connected mobility services that could rapidly be expanded around the world, while continuing to compete on the market for luxury cars. Daimler is the owner of the Mercedes brand.